TH: Gold looks vulnerable as investors continue to exit
CHENNAI, APRIL 23:
Gold looked vulnerable on Tuesday and could drop in spot and futures trade as investors continue to exit positions in exchange-trade funds.
Gold’s rise to a week’s high in the global market, triggered profit-booking.
According to SPDR Gold Trust, world’s largest gold-backed exchange-traded fund, dropped to 1,104.71 on Monday from 1,123.06 tonnes during the weekend.
In early Asian trade, spot gold dropped to $1,426.85 an ounce, while gold futures for delivery in June slipped to $1,426.30.
In the domestic market on Monday, gold for jewellery (99.5% purity) closed higher at Rs 26,770 for 10 gm, while pure gold (99.9% purity) ended at Rs 26,840.
Crude oil is likely to be range-bound despite stocks in the US rising. Bloomberg said the stocks could be at 22-year high.
Brent crude oil June contracts were up a tad at $100.44 a barrel, while West Texas Intermediate (NYMEX) crude ruled at $89.22.
The oils and oilseeds counter is likely to come under more pressure as the bird flu outbreak in China continues to affect demand for feed. In addition, Chinese imports dropped 20 per cent in March.
Soyabean July contracts fell to $13.65 a bushel on the Chicago Board of Trade (CBOT), while on Bursa Malaysia Derivatives Exchange crude palm oil for July delivery slipped to 2,255 ringgit ($739) a tonne.
Prospects of improved weather have give rise to speculation that corn (industrial maize) planting in the US will speed up. This, in turn, has begun to cast pressure on wheat.
Wheat July contracts on CBOT were futures lower at $7.01 a bushel, while corn declined to $6.23 a bushel.
